Non mechanical trading using pattern recognition and experience

Guidelines
Im taking a different approach with this thread as compared to the one i started before, but not VERY different. I want it to be a thread about technical analysis and not something other then that.

First a few things i have read and so on and these things i think have no place in this thread, therefore i will ignore any discussions about those topics:

1. Mechanical trading. Also so called "systems" where you repeat the same thing over and over because of some indicator or combination of indicators goes in this category.
2. General statements about trading such as: "The trend is your friend." or "You need to have the mentality for it." and so on.
3. Money. Money should NEVER be discussed on the internet if you ask me. Im not interested in money AT ALL. Im interested in technical analysis.

So what i want it to be about is thinking, analysis. The exchange of ideas about this. Right now i prefer the E/G so thats what i trade. But i look at other pairs and other instruments every once in a while as i think of an interesting hypothesis or such.

Oops, actually the lowest SR is thursday low, not friday.

I guess it was a pretty OK hypothesis.

IM going out for like 5 minutes so i set my TP and SL FOR THAT MATTER, and FOR THAT MATTER ONLY, as such:

Kind of a weird, undecided PA today. I would like to see a break of either friday high or thursday low to give some direction.

hey buddy,
i see you are letting the losers run and cutting the winners or is this some kind of new system you are experimenting?

Hey buddy!
I dont know.
I think im depressed.
Life is war in this fucked up civilisation. Sometimes you loose a battle or three. But the war goes on, always more battles to loose or win.

Think i will fry some bananas. I use butter and then at the end i put some syrup on it and let it caramelize for a bit.

I was wrong about the breaks

I was so stuck in thinking about this. I was so intent on focusing on the possibility of getting good at really seeing which ones of the breaks that was worth a damn. But its all wrong. I dont really beat myself up about it though.

Its all about perspective
Remove what i was thinking. Its all about what ideas, what filters, what intepretation you use on it. Either it makes no sense at all as with most people who look at it from the beginning.

Or:



It makes perfect sense. If it makes no sense, DONT TRADE.
It would not have mattered if i wasted 60% of this account to get to this insight. I would not bat an eye at the expense. Fortunately i wasted only 15%. Now i have a bit more of a firm grasp on WHAT it is that makes me money. Which ideas. Which frame of mind. Which interpretation.



So what IS that frame of mind? Well its a bit elusive actually. Not super easy to put into words.

But first off: FORGET ABOUT entries at highs and lows. Once you get to a high or a low, your position should GENERALLY speaking ALREADY have been placed. This is a VERY important point. So, just FORGET ABOUT ENTERING AND HIGHS AND LOWS.

I was right about one thing all along though. Time is a continous flow. Looking at one chart of the other is a matter of what ZOOM you want on your tick data. NOTHING else. Time is NOT divded into frames.

So where are the entries and the exits?

Well for one, look at the trades i posted. Forget about the other trades, those where mostly hunches. You dont need hunches. You need a good sound frame of intepretation. Just like Martin Armstrong figured, there is NO NEED for subjectivity. And EA could be built, but when you DO get it, there is no need. Just look at Nunix. At +13% a day you DONT need an ea. You just need to do it for a while and then you are done.


Im not writing this for YOU specifically. I have my beefs with modern society which i think is absurdly self destructive. I have my beefs with people in general and i feel sorry for those pathetic, weak idiots. In a existential Sartreian way i think we need to take responsibility for what we do. So people need to accept responsibility for their weakness and their pathetic ways. Im not saying its easy. Im not saying its statistically normal to do so. But i AM stupulating that we ARE responsible for our actions. Who else should be?

I think modern politics is run by idiot, self serving fascists. Including the swedish government, the swedish corporations and the swedish riksbank. Otherwise this idiotic fiat money fucked up financial system would NOT be in place. Thats why i want it to go away. Thats why im writing this. Most probably no one cares. And im not into sales so i dont care about "spreading the word". After all what im talking about is the money system, im doing it at the biggest forum on earth for this purpose. I think ive done enough to tell people about this. Im not about to start handing out pamflets and what not. Thats not my style.

So uh, just to make it clear: You DONT need experience. You DONT need promonitions. You DONT need expensive equipment. You DONT need a hedge fund. You DONT need extra sensory perception to make an infinite amount of money trading an instrument. You ONLY need a sound way of reading the chart.


Im ready to tell you all that i know about this.

One further important point to be made: It doesnt matter what chart you are looking at, you SHOULD interpret it sort of the same. I guess its because NOW is the only important time. So:


They should both hold the same significance. If you want to buy or sell or do nothing it should not matter what chart you are looking at. If you are considering H4 and you see whats going on or if you are considering M1 should not make a difference for youre judgement AT THIS TIME. Meaning if you have a open position right now and lets say its a sell, then REGARDLESS of what chart you are looking at you should have at least a SIMILAR feeling for if its doing good or bad.

No matter if i had an open sell, or a buy, or several of each or a mix of each it would be BAD right now. Thats what i think.

The only thing highs and lows are good for is defining max probable take profits. Meaning if you are buying there is only about a 50/50 chance price till go through the nearest high and vice versa for the sells.

Actually i find that hilarious. Thats NOT the kind of humour my woman appreciates.

For a lot of really important reasons this is one of the most beautiful pictures i have ever seen.

Ive worked my ASS of for years and years to be able to do that.
Those reasons are:

1. It wasnt a PERFECT RR exactly, roughly 1:1, but that should for the most part be OK. But a PERFECT trade is sort of less interesting. This is more like a bread and butter trade, some risk and i took it and then WHAM! closed on the relatively big profit.
2. Its beautiful because there was a SR only SLIGHTLY above the entry, but i FELT the risk wasnt all that great during the time after entry because of how the PA was behaving before in relation to the lows and highs that was relevant.
3. It took only a few minutes. No need for sleeping bad, no need to stare for hours and hours, no need for worry.

Disregard all my trades before 8 PM August 25th
All trades before that date is NOT for study, only for story purposes. So they are NOT technically interesting BEFORE 8 PM on August 25th.
I was considering removing my explorer and starting a new one. But then i came to think about the fact that a comeback is a lot cooler then a landslide vicotyr at the start. The coolest thing would have been to have ALL my trades from my Alpari account from 2010 and onwards including my super idiot thing i did summer 2010 when i blew 75% of the account.